Bank of America reported “strong and stable” auto lending in the third quarter, part of a gradual increase in consumer lending overall.
“You are seeing the auto lending business — both direct-to-consumer and then what we do with dealers and stuff — they are strong and stable and you saw the car sales numbers strong, and you are seeing the consumer real estate strong,” said Brian Moynihan, chairman and chief executive, in a conference call on Wednesday.
He said that in the auto segment Bank of America has a higher share than its peers of loans to customers with credit scores 740 and above. That’s the high end of the prime category, which starts at 661, and into the “super-prime” range, which starts at 781, according to Experian Automotive.
Outstanding loans for direct and indirect consumer lending, the category that includes auto loans, were $87.3 billion as of Sept. 30, up 5% from a year ago, the bank said.
Bank of America doesn’t typically break out specific numbers for auto loans. Within the total for direct and indirect consumer lending, the bank said outstanding “auto and specialty lending” loans were $41.7 billion, up 10% from a year ago. Spokesman Jerry Dubrowski said auto loans account for the vast majority of that volume.
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